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This plan is roughly isomorphic to option compensation. It has a serious incentive compatibility problem: the value of the options increases with volatility/ris
by voidmain 9y ago
This plan is roughly isomorphic to option compensation. It has a serious incentive compatibility problem: the value of the options increases with volatility/risk, so incentivizes unnecessary, and even negative expectation, risk taking. Maybe Musk has a big enough stake in Tesla to mitigate this effect, but it's definitely not a risk free approach for minority shareholders.
- Robotbeat 9y agoIt's also linked to operational milestones, so market cap has to be met with actual progress. That's much better than market cap alone.